Address the root causes of the cost of dealers operating out of control KA.docVIP

 PAGE \* MERGEFORMAT 12 Address the root causes of the cost of dealers operating out of control KA In recent years, China KA faster and faster system development, major systems have staking their claims, now 34 laps into the market, modern retail channels in the enterprise, driving up sales of proportion day, and some enterprises in the first-line cities KA system sales accounted for almost half of the total market sales. So some power of large enterprises will be the major retail system has gradually reverted to self-employed, while the small and medium enterprises because of the operation of large modern retail system, the cost of inputs had to borrow the operation of modern retail dealer channel for channel, intended by dealer the relationship between networks and customer intelligence to reduce the operating costs of KA. At present, enterprises in cooperation with distributors there are usually two ways, one by the dealer responsible for various costs of negotiations, but the cost is paid directly by the company store; the other is to first be first to advance the fees dealers, manufacturers by the contract to be written off on a regular basis. These two methods are easier for businesses to operate, however, these two approaches is that there is a common problem, that is difficult to control costs, often there is an over spend. There are two main aspects of the specific performance 1, the rate of high cost or even cost of inversion The author has also served in a private enterprise, require dealers to the cost of a monthly rate of 30% or less, but many dealers, the average cost of a monthly rate of 50% or more, while a dealer with one month’s total sales for 5 million monthly operating costs of the dealer’s KA was as high as 80000, there has been cost inverted situation. Although this cost is not the case upside down too common, but for enterprises, distributors of high expense ratio is very common; 2, promotions and promotion expenses, difficult to mo